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Homework 4

Primary Task Response: Within the Discussion Board area, write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.

The global digital trend is growing rapidly worldwide with billions of users and more than a quarter of the users live in Southeast Asia. Knowing this region is viable to the success of your global fast food expansion, you and your boss invite a Chinese marketing communications consultant who is visiting the United States next week to meet with you to determine the social media marketing strategy for the global fast food franchise. Given that digital social media are powerful marketing communication channels, discuss the following:

  • Describe the similarities and differences among social media in the US and China.
  • How would you use social media to grow the fast food franchise business in this China?
  • What influence will social media have on consumer behavior as a result of the differences in cultural values and attitudes? 
  • Explain how cultural diversity affects ethical and legal decisions about social media.

Responses to Other Students: Respond to at least 2 of your fellow classmates with at least a 100-word reply about their Primary Task Response regarding items you found to be compelling and enlightening. To help you with your discussion, please consider the following questions:

  • What did you learn from your classmate’s posting?
  • What additional questions do you have after reading the posting?
  • What clarification do you need regarding the posting?
  • What differences or similarities do you see between your posting and other classmates’ postings?
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Homework 4

instructions: Due: Mar 30, 2016At the beginning of the class
Page 1 of 1
Homework 4
MGT 472 – Advanced Operations Management
(1) The booking limits for four fare classes are given as b = (b1, b2, b3, b4) = (20, 15, 5, 2).
Suppose that until now 5 bookings are made for class 2 and 4 bookings are made for class 3.
The following parts are independent.
a) Process a request for 2 bookings for class 4. Decide on accept/reject and then report the
cumulative booking vector B.
b) Process a request for 6 bookings for class 1. Decide on accept/reject and then report the
cumulative booking vector B.
c) Process a request for 2 bookings for class 3. Decide on accept/reject and then report the
cumulative booking vector B.
d) Process a cancellation of 2 bookings for class 3. Report the cumulative booking vector B.
(2) A hotel numbers its fare classes from higher to lower as 1, 2, 3 and 4. The room prices for
these classes are p1=$300, p2=$250, p3=$200, p4=$150. The demands for these fare classes are
denoted by D1, D2, D3 and D4. The hotel considers the cumulative demands
D1=D1, D1,2 =D1+D2, D1,2,3 = D1+D2+D3, D1,2,3,4 = D1+D2+D3+D4.
These demands turn out to have uniform distributions with the following ranges:
D1 ∈ [0, 10], D1,2 ∈ [0, 20], D1,2,3 ∈ [0, 30], D1,2,3,4 ∈ [0, 40].
a) Before applying EMSR-b heuristic, the hotel needs aggregate prices p1, p1,2, p1,2,3 and p1,2,3,4.
Compute these prices.
b) What is the protection level y3 for classes {1, 2, 3}?
c) What is the protection level y2 for classes {1, 2}?
d) What is the protection level y1 for class {1}?
(3) A hotel numbers its fare classes from higher to lower as 1, 2, 3 and 4. The room prices for
these classes are p1=$300, p2=$250, p3=$200, p4=$150. The demands for these fare classes are
denoted by D1, D2, D3 and D4.
These demands turn out to have uniform distributions with the following ranges:
D1 ∈ [0, 10], D2 ∈ [0, 10], D3 ∈ [0, 10], D4 ∈ [0, 10].
a) Use EMSR-a heuristic to find the protection level y3 for classes {1, 2, 3}?
b) Use EMSR-a heuristic to find the protection level y2 for classes {1, 2}?
(4) An airline has two fare classes and protects 40 seats for the higher fare class while reserving
for the lower fare class. The demand for the higher fare class ranges from 30 to 70 and it is
uniformly distributed. If the discount ticket costs $300, how much should the full fare ticket
cost to make the protection level of 40 optimal?
Hint: Use the formula pd/pf = P(df > y) = 1-[(y-a)/(b-a)] for the uniformly distributed demand
over [a,b].

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